Penny Slots Dominate January Revenue at South Dakota Casinos

^{Slot machines like these at Cadillac Jack's Gaming Resort in Deadwood were a huge revenue generator in January. (Photo: Aaron Rosenblatt / Rapid City Journal)}

South Dakota’s Deadwood casinos reported $11.1 million in revenue for January, up from the previous year’s figure of $10.7 million and representing a year-on-year increase of 4.3%.  

The figures, published by the South Dakota Department of Revenue, show that slots accounted for $9.8 million of the total, up 5% year-on-year from $9.3 million. Table games also recorded a year-on-year revenue increase, rising 4.6% from $1.25 million to $1.3 million. However, retail sports betting declined 66.2% year-on-year to $36,853.  

As Deadwood casinos celebrate a successful month, South Dakota lawmakers are also looking to expand their gambling market with the introduction of Senate Joint Resolution 504, which would legalize online sports betting if passed. So far, the legislation has passed the Senate and waits for approval from the House before the resolution can be placed on the November ballot.  

Penny Slots Lead Over Other Game Types in January 

Of slots, table games, and retail sports betting, one-cent slots were the most popular game type for Deadwood casinos, generating $8.4 million and rising 8.4% year-on-year. This was followed by blackjack, which was up 23.5% year-on-year to $615,406, and one-dollar slots, which recorded $512,885, but fell 17.4% year-on-year.  

Five-cent slots had the biggest year-on-year revenue increase, rising 130.6% to $51,096. Player banked poker reported the second-highest increase, with revenue up 47.2% year-on-year to $101,807. Other than blackjack, five-dollar slots were the only other game type to report a double-digit revenue increase, rising 22.6% year-on-year to $198,985.   

Fifty-cent slots had the highest year-on-year revenue drop out of all the game types last month, declining 59.8% to $18,552. Other double-digit drops came from Roulette, down 31.8%, Craps, down 27.6%, 25-cent slots, down 21.3%, one-dollar slots, down 17.4%, and city slots, down 14.7% year-on-year.  

South Dakota Lawmakers Debate Online Sports Betting Bill 

As retail sports betting dropped off in January, lawmakers are considering bringing it online, with the introduction of Senate Joint Resolution 504 late last month. The measure, sponsored by Senator Case Cabtree, would put the issue of legalizing online sports betting before voters on the November 3 ballot if passed by both chambers.  

Supporters of the bill argue that it would bring a new source of revenue to the state as well as provide property tax relief, with 90% of tax revenue generated from online sports betting to be directed toward that goal.  

Senator Steve Kolbeck also argued that legalizing online sports betting would prevent bettors from driving across state lines to place bets on online sportsbooks. He also argued that it would bring economic benefits to towns and residents, allowing them to stay inside communities to place bets.  

“This is us having revenue out there that we’re not collecting, just like when Amazon was new, we had to go get that,” Kolbeck said. “We had to adjust as a state. Now we have this situation that this body needs to react to and adjust to so that revenue can come back into our state coffers.” 

The bill now sits in the House, with a hearing scheduled for late February. Lawmakers have until the end of March to advance the bill.